Study On China’s Income Distribution Problems And Its Measures

Economics of income distribution is an old topic, and the income distribution theory is a very important part in economists. Currently there are many theoretical research in this field. In the real economic and social development, income distribution is also increasingly becoming a social issue of common concern. The government pay more attention to it. Facing the increasing income gap, the Government is actively working to reform the income distribution system, hoping to standardize income distribution system, and towards an income distribution system which will be more consistent with our national circumstances. In the course of reform, we can better understand the causes of inequitable income distribution, in order to make policies and recommendations that are more in line with realistic issues.Retrospective analysis of the income distribution theory and the rent theory in western Economics and describe the current situation of income distribution in China, and finally, sum up the reasons for income distribution issues in our country, and put forward the corresponding countermeasures and suggestions,which have important significance and reference value on reform of the income distribution system in the future in China.Retrospective study the income distribution theory of the classical, neo-classical period, the new Cambridge School and the rent theory of public choice school and international trade school has great theoretical and practical significance. Theoretical significance is:since these famous theories of income distribution is summed through long-term practical inspection in States, therefore it has significant reference value on study the income distribution; practical significance is:it has important implications and significance for China’s reform of the income distribution system, and properly deal with the problem of income distribution in the period of modernization and put forward countermeasures. This paper combines the theory and reality, combining static analysis and dynamic analysis method, describes the income distribution theory of classical, neo-classical and the new Cambridge School, and describes the current situation of income distribution in China, analyzing the reasons for income distribution, and propose solutions to the income distribution issue.Retrospective analysis of the income distribution of theory classical, neo-classical period and the new Cambridge School, we can draw that the classical economics study income distribution theory which is market-based, focusing on agricultural sectors arid mainly discuss the income distribution theory between the labor, capital and land. Represented by David Ricardo factor income distribution theory, its core is to study the theory of surplus value of income distribution and division, he said wages and profits are parts of the value created by the workers, noting that wages, profit and rent exist the shift among them. Neo-classical distribution theory inherited and developed the classical income distribution theory, common to classical income distribution theory, the neo-classical income distribution theory was also based on market, focusing on researching how to distribute income according to factors of production marginal contribution revenue under conditions of perfect competition.Represented by Marshall income distribution theory, its core of income distribution theory is to propose the balanced price distribution theory, thinking elements unilateral of supply and needs cannot decide the elements’price, only combines supply and needs together and reach an equilibrium so that can get the elements price. The theory has became the leader of Western income distribution theory, and is the main sources of contemporary income distribution theory, in addition became basic production elements income distribution theory in contemporary economics textbook. Marshall believes that as long as the market is the ideal state of perfect competition, that is a free market there must be equilibrium of elements supply and demand, thus we can get an equilibrium price of the elements, hence the factor income distribution will reach a fair and reasonable state. In fact, in the development of realistic, development of the market is not completely free, part of government intervention will affect the free hands to play, thus the so-called equilibrium theory of income distribution is an ideal state. The new Cambridge School traditionally is renowned for its attention to the theory of income distribution, mainly revolve around the relationship between the economic growth and income distribution. And concluded that subtle dynamic relationship exists between income distribution and economic growth, interact with each other. Public choice school and international trade school research and analyse on rent-seeking theory and provide important reference value and significance to deal with the issue of vested interest groups in China.Currently in China, large inequities exist in income distribution so that income disparities are growing, as evidenced by the proportion of residents’income in the national income gradually decline, regional income disparity and industries income gap become more apparent, causing serious polarization between rich and poor. For what appears on the question of income distribution at this stage, our government are constantly promoting the reform of income distribution system based on the principles of equity and efficiency.The author believes that through analysis of the current situation of income distribution in our country, the current income gap in our country has very serious problems, in1999, the population Gini coefficient is close to the international warning level of0.45, which means that the inequitable distribution of income is more evident at this stage. Of course, the causes for this are a lot, including old income distribution system, too high monopoly income, corruption, and so on. With carrying forward the reform of the income distribution system, China’s income distribution problems will be solved, but always adhere to take an appropriate fairness and efficiency perspective as a fundamental guiding principle.